( X) [2-7] Corporate Information [8] Corporate Structure [9] Board of Directors [10-12] Management Team [13]

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2 page halaman Notice of Annual General Meeting Notis Mesyuarat Agung Tahunan [2-7] Corporate Information [8] Corporate Structure [9] Board of Directors [10-12] Management Team [13] Majuperak holdings berhad ( X) Chairman s Statement Kenyataan Pengerusi [14-17] Statement of Corporate Governance [18-23] Statement on Internal Control [24-25] Report of Audit Committee [26-30] Additional Compliance Information [31-33] List of Properties [34-38] Financial Highlights [39] Analysis of Shareholdings [40-41] Directors Statement of Responsibility [42] Directors Report Laporan Pengarah-pengarah Statement by Directors Penyata Pengarah-pengarah Laporan tahunan 2007 Annual Report Statutory Declaration Pengakuan Berkanun Auditors Report Laporan Juruaudit Balance Sheet Lembaran Imbangan Income Statement Penyata Pendapatan Statement of Changes In Equity Penyata Perubahan Ekuiti Cash Flow Statements Penyata Aliran Tunai Notes to the Financial Statements Nota-nota kepada Penyata Kewangan Proxy Proksi

3 Notice of Annual General Meeting NOTICE IS HEREBY GIVEN that the 5th (Fifth) Annual General Meeting of the Company will be held at Dewan Bandaran Ipoh, Jalan Panglima Bukit Gantang Wahab, Ipoh, Perak Darul Ridzuan on Thursday, 26 June 2008, at a.m. to transact the following businesses: AGENDA AS ORDINARY BUSINESS 1. To receive, consider and adopt the Audited Financial Statements for the year ended 31 December 2007 together with the Report of the Directors and Auditors thereon. 2. To approve the payment of Directors fees in respect of the financial year ended 31 December To re-elect Hajah Wan Salmah binti Wan Abdullah who retires in accordance with Article 84 of the Company s Articles of Association. 4. To re-appoint Tan Sri Dato Sri Abang Ahmad Urai bin Datu Hakim Abang Haji Mohideen as Director of the Company to hold office until the conclusion of the next Annual General Meeting pursuant to Section 129(6) of the Companies Act, To re-appoint Tan Sri (Dr) Abdul Aziz bin Abdul Rahman as Director of the Company to hold office until the conclusion of the next Annual General Meeting pursuant to Section 129(6) of the Companies Act, To re-appoint Messrs AljeffriDean as Auditors of the Company and to authorise the Directors to fix their remuneration. As special business Ordinary Resolution 7. Proposed Shareholders Ratification And Proposed Shareholders Mandate For The Recurrent Related Party Transactions Of A Revenue Or Trading Nature THAT subject to the Listing Requirements of Bursa Malaysia Securities Berhad ( Securities Exchange ), approval be and is hereby given to MHB and its subsidiary companies ( MHB Group ) to enter into recurrent related party transactions of a revenue or trading nature ( Recurrent Related Party Transactions ) with the related party set out in Section 2.1 of the circular to shareholders dated 4 June 2008 ( Circular ), subject to the following: Resolution 1 Resolution 2 Resolution 3 Resolution 4 Resolution 5 Resolution 6 Resolution 7 (i) the Recurrent Related Party Transactions are entered into in the ordinary course of business on terms not more favourable to the related party than those generally available to the public and the Recurrent Related Party Transactions are undertaken on arms length basis and are not to the detriment of the minority shareholders of the Company; Majuperak holdings berhad ( X) [] Annual Report 2007

4 Notice of Annual General Meeting (continued) (ii) the disclosure is made in the annual report of the breakdown of the aggregate value of the Recurrent Related Party Transactions conducted pursuant to the shareholders mandate during the financial year, amongst others, based on the following information: (a) (b) the type of Recurrent Related Party Transactions made; and the name of the related party involved in each type of Recurrent Related Party Transactions made and its relationship with the Company; (iii) the shareholders mandate is subject to annual renewal and this shareholders mandate shall only continue to be in full force until: (a) (b) (c) the conclusion of the next Annual General Meeting ( AGM ) of the Company following this 5th AGM, at which this shareholders mandate will lapse, unless the authority is renewed by a resolution passed at the next AGM; the expiration of the period within which the next AGM is required to be held pursuant to Section 143(1) of the Companies Act, 1965 ( Act ) (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act); or revoked or varied by resolution passed by shareholders in a general meeting before the next AGM; whichever is earlier; AND THAT all Recurrent Related Party Transactions entered into by the MHB Group from 27 June 2007, being the date the Company was listed on the Main Board of Securities Exchange up to the date of this Ordinary Resolution be and are hereby approved and ratified. AND THAT the directors and/or any of them be and are hereby authorised to complete and do all such acts and things as they may consider expedient or necessary (including executing such documents as may be required) to give effect to the Recurrent Related Party Transactions contemplated and/or authorised by this Ordinary Resolution; AND THAT the estimates given of the Recurrent Related Party Transactions specified in Section 2.1 of the Circular being provisional in nature, the directors and/or any of the be and are hereby authorised to agree to the actual amount or amounts thereof provided always that such amount or amounts comply with the procedures set out in Section 2.2 of the Circular. By order of the Board Izman Kamal bin Ismail Company Secretary Ipoh 4 June 2008 A n n u a l R e p o r t [] M a j u p e r a k h o l d i n g s b e r h a d ( X)

5 Notice of Annual General Meeting (continued) Notes: 1. A member entitled to attend and vote at the AGM is entitled to appoint a proxy/proxies who may but need not be a member/members of the Company to attend and vote in his/her stead and Section 149 (1)(b) of the Act shall not apply. 2. When a member appoints more than one proxy the appointments shall be invalid unless he/she specifies the proportion of his/her shareholding to be represented by each proxy. 3. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one proxy in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. 4. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorised in writing or if the appointer is a corporation, either under its common seal or under the hand of an officer or attorney duly authorised. 5. The instrument appointing a proxy must be deposited at the Registered Office of the Company at Level 6, Wisma Wan Mohamed, Jalan Panglima Bukit Gantang Wahab, Ipoh, Perak Darul Ridzuan at least forty-eight (48) hours before the time appointed for holding the AGM or any adjournment thereof. 6. The registration for the above Meeting will commence on Thursday, 26 June 2008 at 8.30 a.m. Statement Accompanying Notice of Annual General Meeting Resolutions 3 to 5 The profiles of the Directors standing for re-election / re-appointment are disclosed on pages [10] to [12]of the Annual Report and the details of their interests in the securities of the Company are disclosed under Analysis of Shareholdings on page [40] and [41] of the Annual Report. Explanatory Note Resolution 7 Please refer to the Circular to Shareholders date 4 June 2008 which is enclosed together with the Annual Report of the Company. Majuperak holdings berhad ( X) [] Annual Report 2007

6 notis mesyuarat agung tahunan DENGAN INI ADALAH DIMAKLUMKAN BAHAWA Mesyuarat Agung Tahunan yang Kelima (5) Majuperak Holdings Berhad akan diadakan di Dewan Bandaran Ipoh, Jalan Panglima Bukit Gantang Wahab, Ipoh, Perak Darul Ridzuan pada hari Khamis, 26 Jun 2008 jam pagi untuk melaksanakan urusan-urusan biasa berikut sebagai resolusi biasa:- AGENDA PERKARA BIASA 1. Untuk menerima, mempertimbangkan dan menerima pakai Penyata-Penyata Kewangan Beraudit bagi tahun berakhir 31 Disember 2007 berserta Laporan para Pengarah dan para Juruaudit berkenaan. 2. Untuk meluluskan pembayaran yuran para Pengarah berkaitan tahun kewangan berakhir 31 Disember Untuk melantik semula Hajah Wan Salmah bin Wan Abdullah yang bersara menurut Artikel 84 Tataurus Penubuhan Syarikat. 4. Untuk melantik semula Tan Sri Dato Sri Abang Ahmad Urai bin Datu Hakim Abang Haji Mohideen sebagai Pengarah Syarikat dan menjawat jawatan sehingga penyelesaian Mesyuarat Agung Tahunan yang seterusnya menurut Seksyen 129(6) Akta Syarikat, Untuk melantik semula Tan Sri (Dr) Abdul Aziz bin Abdul Rahman sebagai Pengarah Syarikat dan menjawat jawatan sehingga penyelesaian Mesyuarat Agung Tahunan yang seterusnya menurut Seksyen 129(6) Akta Syarikat, Untuk melantik semula Tetuan AljeffriDean sebagai Juruaudit Syarikat dan member kuasa kepada Pengarah-Pengarah untuk menetapkan bayaran mereka. PERKARA LUARBIASA Ketetapan Biasa 7. Cadangan Pengesahan Para Pemegang Dan Cadangan Mandat Para Pemegang Saham Bagi Urusniaga-Urusniaga Berulang Berkenaan Pendapatan atau Dalam Bentuk Perniagaan dengan Pihak Berkaitan. BAHAWA tertakluk kepada Kehendak-Kehendak Penyenaraian Bursa Malaysia Securities Exchange ( Securities Exchange ) kebenaran adalah dan dengan ini diberikan kepada MHB dan anak-anak syarikatnya ( Kumpulan MHB ) untuk memasuki urusniaga-urusniaga berulang berkenaan pendapatan atau yang dalam bentuk perniagaan (Urusniaga-urusniaga Berulang dengan Pihak Berkaitan ) dengan pihak yang berkaitan sebagaimana dinyatakan pada Seksyen 2.1 pekeliling yang diedarkan kepada para pemegang saham bertarikh 4 Jun, 2008 ( pengumuman ) tertakluk kepada berikut: Resolution 1 Resolution 2 Resolution 3 Resolution 4 Resolution 5 Resolution 6 Resolution 7 (i) Urusniaga-urusniaga Berulang dengan Pihak Berkenaan di dalam urusan perniagaan biasa adalah dimasuki di atas terma-terma yang tidak melebihkan pihak berkenaan melainkan yang pada dasarnya diterima umum dan Urusniaga-urusniaga Berulang dengan Pihak Berkenaan dilaksanakan atas dasar secara berniaga dan tidak memudaratkan kepada para pemegang saham minoriti Syarikat; A n n u a l R e p o r t [] M a j u p e r a k h o l d i n g s b e r h a d ( X)

7 notis mesyuarat agung tahunan (sambungan) (ii) (iii) penzahiran dibuat di dalam laporan tahunan mengenai pecahan nilai agregat Urusniaga-urusniaga Berulang dengan Pihak Berkenaan yang telah dilakukan menurut mandat pemegang-pemegang saham semasa tahun kewangan tersebut, antara lain, berdasarkan kepada maklumat berikut: (a) jenis Urusniaga-urusniaga Semula dengan Pihak Berkenaan yang telah dibuat; dan (b) nama pihak berkenaan yang terlibat di dalam setiap jenis Urusniaga-urusniaga Berulang dengan Pihak Berkenaan yang telah dibuat dan hubungannya dengan Syarikat; mandat para pemegang saham adalah tertakluk kepada pembaharuan tahunan dan mandat para pemegang saham ini akan hanya terus berkuatkuasa sehingga: (a) tamatnya Mesyuarat Agung Tahunan Syarikat yang berikutnya selepas Mesyuarat Agung Kelima ini bilamana mandat para pemegang saham ini akan luput melainkan kuasanya diperbaharui melalui resolusi yang diluluskan pada Mesyuarat Agung yang berikutnya; (b) tempoh tamat di mana Mesyuarat Agung yang sepatutnya diadakan menurut Seksyen 143(1) Akta Syarikat 1965 ( Akta ) (tetapi tidak boleh dilanjutkan kepada perlanjutan sebagaimana yang dibenarkan menurut Seksyen 143(2) Akta tersebut); atau (c) dibatalkan atau diubah melalui resolusi yang diluluskan oleh pemegang-pemegang saham di dalam satu mesyuarat sebelum Mesyuarat Agung yang berikutnya; yang mana terlebih dahulu; DAN BAHAWA kesemua Urusniaga-urusniaga Berulang dengan Pihak Berkenaan yang telah dimasuki oleh Kumpulan MHB daripada 27 Jun 2007, iaitu tarikh Syarikat telah disenaraikan di Papan Utama Securities Exchange sehinggalah ke tarikh Ketetapan Biasa ini dan dengan ini diluluskan dan diratifikasikan. DAN BAHAWA pengarah-pengarah dan/atau mana-mana dari mereka adalah dan dengan ini diberikan keizinan untuk menyempurnakan dan melakukan segala tindakan-tindakan dan perkara-perkara yang mereka fikirkan wajar dan suaimanfaat (termasuklah menyempurnakan apaapa suratcara-suratcara sebagaimana yang diperlukan) bagi memberikan kesan kepada Urusniagaurusniaga Berulang dengan Pihak Berkenaan yang telah dicadangkan dan/atau yang diberikuasa oleh Ketetapan Biasa ini; DAN BAHAWA anggaran-anggaran yang telah diberikan berkenaan Urusniaga-urusniaga Berulang dengan Pihak Berkenaan sebagaimana yang dinyatakan di dalam Seksyen 2.1 Pengumuman yang bersifat sementara, pengarah-pengarah dan/atau mana-mana antara mereka adalah dan dengan ini diberikuasa untuk bersetuju dengan jumlah atau jumlah-jumlah berkenaannya mematuhi prosedurprosedur yang dinyatakan di dalam Seksyen 2.2 Pengumuman. Dengan arahan Lembaga, Izman Kamal bin Ismail Setiausaha Syarikat Ipoh 4 Jun 2008 Majuperak holdings berhad ( X) [] Annual Report 2007

8 notis mesyuarat agung tahunan (sambungan) Nota-nota: 1. Seorang ahli yang layak untuk menghadiri and mengundi di Mesyuarat Agung adalah berhak untuk melantik proksi/ proksi-proksi yang mungkin tetapi bukanlah perlu seorang ahli/ahli-ahli Syarikat untuk menghadiri dan mengundi sebagai gantinya dan Seksyen 149(1)(b) tidak akan terpakai. 2. Apabila seorang ahli melantik lebih daripada seorang proksi maka perlantikan tersebut adalah tak sah melainkan ahli berkenaan menyatakan bahagian-bahagian pegangan sahamnya yang akan diwakili oleh proksi-proksi berkenaan. 3. Bilamana seorang ahli adalah namaan yang berkuasa sebagaimana yang didefinasikan di bawah Akta Sekuriti Industri (Pendeposit-Pendeposit Pusat), 1991, ianya boleh melantik sekurang-kurangnya seorang proksi bagi setiap Akaun Sekuriti yang dipegangnya dengan saham-saham biasa dijadikan jaminan kredit kepada Akaun Sekuriti berkenaan. 4. Suratcara untuk melantik proksi mestilah dibuat di dalam tulisan tangan orang yang melantik atau wakilnya yang telah diberikuasa secara bertulis atau bilamana pelantik adalah sebuah syarikat, samada menggunakan cop mohor biasa atau melalui pegawainya atau wakilnya yang telah diberikan kuasa. 5. Suratcara perlantikan mestilah diserahkan kepada Pejabat Berdaftar Syarikat di Paras 6, Wisma Wan Mohamed, Jalan Panglima Bukit Gantang Wahab, Ipoh, Perak Darul Ridzuan sekurang-kurangnya empat puluh lapan (48) jam sebelum masa yang ditetapkan untuk mengadakan Mesyuarat Agung Tahunan tersebut ataupun penangguhannya. 6. Masa pendaftaran bagi Mesyuarat di atas akan bermula pada hari Khamis bersamaan 26 Jun, 2008 pada jam 8.30 pagi. Resolusi 3 hingga 5 PENYATA MENGIRINGI NOTIS MESYUARAT AGUNG TAHUNAN Profil-profil Pengarah-Pengarah yang bertanding untuk pemilihan semula/perlantikan semula dikemukakan pada mukasurat-mukasurat [10] hingga [12] di dalam Laporan Tahunan dan butir-butir mengenai kepentingan mereka di dalam saham-saham syarikat adalah didedahkan di bawah Analisis Pegangan-Pegangan Saham pada mukasurat [40] dan [41] Laporan Tahunan. Nota Penerangan Resolusi 7 Sila rujuk kepada Pengumuman kepada Pemehang-Pemegang Saham bertarikh 4 Jun 2008 yang dikepilkan bersamasama Laporan Tahunan Syarikat. A n n u a l R e p o r t [] M a j u p e r a k h o l d i n g s b e r h a d ( X)

9 CORPORATE INFOATION BOARD OF DIRECTORS Dato Seri Megat Najmuddin bin Datuk Seri Dr. Haji Megat Khas Tan Sri Dato Sri Abang Ahmad Urai bin Datu Hakim Abang Haji Mohideen Tan Sri Dato (Dr) Abdul Aziz bin Abdul Rahman Ibrahim bin Katop Wan Salmah binti Wan Abdullah Abdul Aziz bin Subali Chairman Senior Independent, Non Executive Independent, Non Executive Independent, Non Executive Independent, Non Executive Non Independent, Non Executive Non Independent, Non Executive management team Abdul Aziz bin Subali Jaafar bin Baharin Noordin bin Razali Abd Karim Nast bin Mohd Alias Azri bin Ahmad Mazlan bin Dato Shamsuddin Abdul Rahim bin Bahari Abdul Aziz bin Abdul Rahim Musanif bin Hj Md Nen Izman Kamal bin Ismail, MCCS Group Chief Executive Officer Group General Manager, Property Development (Northern Region) Group General Manager, Property Development (Central Region) Group General Manager, Accounts & Finance Group General Manager, Corporate Planning & Business Development Group Manager, C & S Engineering Services Group Manager, Land & Real Estate Group Manager, Property Management Acting General Manager, Property Development (Southern Region) Group Manager, Secretarial & Legal REGISTERED AND PRINCIPAL PLACE OF BUSINESS 6th Floor Wisma Wan Mohamed Jalan Panglima Bukit Gantang Wahab Ipoh, Perak Darul Ridzuan Tel: (05) , , Fax: (05) COMPANY SECRETARIES Izman Kamal bin Ismail (MACS 1311) Rusnah binti Kassim (BC/R/062) SOLICITOR Rusnah Loh Ng & Co Registrar Symphony Share Registrars Sdn Bhd 55 Medan Ipoh 1A, Medan Ipoh Bistari Ipoh, Perak Darul Ridzuan Tel: (05) Fax: (05) AUDITOR AljeffriDean (AF 1366) Chartered Accountants (Malaysia) Principal Banker RHB Bank Berhad STOCK EXCHANGE LISTING Main Board of Bursa Malaysia Securities Berhad (Name: MJPER AK, stock code: 8141) Majuperak holdings berhad ( X) [] Annual Report 2007

10 corporate structure Majuperak Holdings Berhad X (Incorporated in Malaysia) Harta Perak Corporation Sdn Bhd 100% Tenaga Danawa Sdn Bhd 100% Jua Juara Sdn Bhd 100% Teliti Permai Sdn Bhd 100% Aspirasi Juta Sdn Bhd 100% Kinta Silver Management Sdn Bhd 60% Syarikat Majuperak Berhad 100% Majuperak Properties Sdn Bhd 100% Majuperak Freight Sdn Bhd 100% Majuperak Trading Sdn Bhd 100% Majuperak Management Services Sdn Bhd 100% Sempena Makmur Sdn Bhd 100% Majuperak Bina Sdn Bhd 100% Magna Gemilang Sdn Bhd 100% Bihun Jaya (Perak) Sdn Bhd 62% Kasta Mutiara Sdn Bhd 50% United Chemical Industries Berhad 100% Geotextiles (M) Sdn Bhd 100% A n n u a l R e p o r t [] M a j u p e r a k h o l d i n g s b e r h a d ( X)

11 Board of Directors DATO SERI MEGAT NAJMUDDIN BIN DATUK SERI DR HAJI MEGAT KHAS TAN SRI DATO SRI ABANG AHMAD URAI BIN DATU HAKIM ABANG MOHIDEEN 64, Malaysian 75, Malaysian Chairman, Senior Independent & Non Executive Independent Non Executive Dato Seri Megat Najmuddin bin Datuk Seri Dr Haji Megat Khas was appointed to the Board on 17 August 2006, he serves as Chairman of the Board. He obtained his Honours Degree in Law from the University of Singapore in He ceased practice in 1986 to concentrate on business as well as political activities. He served as the State Assemblyman for the constituency of Kelana Jaya, Selangor for two terms, from 1986 to Tan Sri Dato Sri Abang Ahmad Urai bin Datu Hakim Abang Mohideen was appointed to the Board on 6 June He started his career as a Government Officer in the British Colonial Civil Service in the Chief Secretary s Office, Secretariat Kuching, Sarawak in October 1954 and then continued to serve in the same office which became the Office of the Sarawak Chief Minister after Sarawak achieved independence in Malaysia in He has been the President of the Federation of Public Listed Companies Berhad since 1997 and also has been the President of the Malaysian Institute of Corporate Governance since Additionally, he is also a member of Bursa Malaysia s Listing Committee since In 1999, he was appointed as member of the National Economic Advisory Council 2 and the Capital Market Advisory Council of the Securities Commission. In 2001, he was appointed as a member of the Corporate Debt Restructuring Committee. In 1969, he resigned from the Government Service and took part in the Sarawak State politics. He won the Saribas State Constituency Seat in the State General Election in 1974 and was appointed as Junior Minister in the State Ministry of Culture, Youth and Sports in He switched to the Ministry of Agriculture and Community Development in In 1984 he was elected by the Sarawak State Assembly to fill the post of Senator in the Malaysian Senate in the Parliament, Kuala Lumpur. Soon after the appointment he was elected by the House of Senate to fill the post of Deputy Senate President. He was elevated to the post of Malaysian Senate President in 1988 and retired in 1990 upon completion of a full sixyear term as a Senator. Apart from his directorship in the company, he is also the Chairman of Asian Pac Holdings Berhad, Formis Resources Berhad and Tradewinds Corporation Berhad. He is also a member of the Board of Directors of SEG International Berhad, Dialog Group Berhad and Salcon Berhad. He has no conviction for any offence within the past 10 years. He attended all 3 board meetings held during the financial year ended 31 December He does not have any family relationship with any director and / or major shareholder of the Company, or any personal interest in any business arrangement involving the Company. Currently, he sits on the Board of Grand Central Enterprise Berhad, Duta Land Berhad and Pan Global Berhad. He has no conviction for any offence within the past 10 years. He attended all 3 board meetings held during the financial year ended 31 December He does not have any family relationship with any director and / or major shareholder of the Company, or any personal interest in any business arrangement involving the Company. The details of his interest in the ordinary shares of the Company are as disclosed under Analysis of Shareholdings on page [40] of the Annual Report. Majuperak holdings berhad ( X) [10] Annual Report 2007

12 Board of Directors (continued) TAN SRI DATO (DR) ABDUL AZIZ BIN ABDUL RAHMAN IBRAHIM BIN KATOP 51, Malaysian 75, Malaysian Independent Non Executive Independent Non Executive Tan Sri Dato (Dr) Abdul Aziz bin Abdul Rahman was appointed to the Board on 6 June He is a Barristerat-Law, Lincoln s London (Hon.) and also holds a Doctor of Philosophy degree from University Utara Malaysia, Doctor of Business Administration (H.C.) degree from the International Management Centre Buckingham, United Kingdom and Advanced Management Programme from Harvard Business School, Harvard University, United States of America. A qualified lawyer, he began his career with the Kelantan Administrative Service and later with the Malaysian Judicial and Legal Service and has held various key positions such as Magistrate, President of the Sessions Courts, Assistant Parliamentary Draftsman, Federal Counsel and Legal Officer of the National Operations Council during the 13th May 1969 Emergency. He was later seconded to Malaysian Airline System Berhad as Secretary and Legal Affairs Director in connection with the establishment of a new national airline carrier of Malaysia upon reconstruction of then Malaysia-Singapore Airline in Subsequently in 1982, he was promoted as Managing Director and Chief Executive and held this position until Currently, he is one of the partners in Messrs Nik Saghir & Ismail and sits on the board of several public listed companies, namely Asia EP Berhad and BTM Resources Berhad. He has no conviction for any offence within the past 10 years. He attended all 3 board meetings held during the financial year ended 31 December He does not have any family relationship with any director and / or major shareholder of the Company, or any personal interest in any business arrangement involving the Company. A nnual Report 2007 [11] YB Ibrahim bin Katop was appointed to the Board on 6 June He graduated with a Bachelor in Urban Planning degree from Rutgers University, New Jersey, United States of America in Prior to that, he graduated with a Diploma in Regional and Town Planning degree from University Technology MAR A in He went on to obtain a Masters Degree in City and Regional Planning degree from Ohio State University Columbus, Ohio, USA in He is a Registered Planner and is a Member of the Malaysian Town Planner Board, a Corporate Member of the Malaysian Planner Organisation and also holds a Diploma in Translator (Hons) from Dewan Bahasa dan Pustaka. He started his career as Lecturer at the Regional and Town Planning Department of University Technology MAR A in 1986 and became Course Coordinator for Diploma in Regional and Town Planning in He was later promoted as Senior Lecturer in 1994 and also served as Deputy Head of the Planning and Valuation Unit of University Technology MAR A from 1991 to In 1996, he resigned from University Technology MAR A to concentrate on his business interests in landscape and town planning consulting and also property development. He has no conviction for any offence within the past 10 years. He attended all 3 board meetings held during the financial year ended 31 December He does not have any family relationship with any director and / or major shareholder of the Company, or any personal interest in any business arrangement involving the Company. Majuperak holdings berhad ( X)

13 Board of Directors (continued) WAN SALMAH BINTI WAN ABDULLAH ABDUL AZIZ BIN SUBALI 52, Malaysian 55, Malaysian Non Independent Non Executive Non Independent Non Executive Group Chief Executive Officer Wan Salmah binti Wan Abdullah was appointed to the Board on 6 June 2006 She obtained her Bachelor s degree in Social Science (Hons) from University Science Malaysia in She began her career working with Perbadanan Kemajuan Negeri Perak in 1976 as Project Officer before being promoted to the post of Director of Land and Property in 1995 and is now the Director of Land and Industrial Estate Development. She has more than 20 years experience in property development and land related matters. She has no conviction for any offence within the past 10 years. She attended all 3 board meetings held during the financial year ended 31 December She does not have any family relationship with any director and / or major shareholder of the Company, or any personal interest in any business arrangement involving the Company. The details of her interest in the ordinary shares of the Company are as disclosed under Analysis of Shareholdings on page [40] of the Annual Report. Abdul Aziz bin Subali was appointed to the Board on 6 June He obtained his Master s Degree in Master of Business Administration from University Technology MAR A in 2005 and his Bachelor s Degree in Bachelor in Accounting (Hons) from University Kebangsaan Malaysia in He obtained his Diploma in Banking from University Technology MAR A He is a member of Malaysian Institute of Accountants. He started his career with Bank Pertanian Malaysia in 1977 as Accounts Officer and was promoted as Accountant in 1985 and later as the Manager in various managerial posts until He then joined Perbadanan Kemajuan Negeri Perak in 1995 as Finance and Accounts Director and is now the Director of Finance, Accounts, Administration and Public Relation. He has more than 20 years experience in accounts and finance and currently is responsible for the group overall operations and planning and well as the financial aspects. He has no conviction for any offence within the past 10 years. He attended all 3 board meetings held during the financial year ended 31 December He does not have any family relationship with any director and / or major shareholder of the Company, or any personal interest in any business arrangement involving the Company. The details of his interest in the ordinary shares of the Company are as disclosed under Analysis of Shareholdings on page [40] of the Annual Report. Majuperak holdings berhad ( X) [12] Annual Report 2007

14 Management Team NOORDIN BIN RAZALI Group General Manager Property Development (Central Region) ABDUL AZIZ BIN SUBALI Group Chief Executive Officer JAAFAR BIN BAHARIN Group General Manager Property Development (Northern Region) MAZLAN BIN DATO SHAMSUDDIN Group Manager C & S Engineering Services ABDUL RAHIM BIN BAHARI Group Manager Land & Real Estate MUSANIF BIN HJ MD NEN Acting General Manager Property Development (Southern Region) A nnual Report 2007 ABD KARIM NAST BIN MOHD ALIAS Group General Manager Accounts & Finance AZRI BIN AHMAD Group General Manager Corporate Planning & Business Development ABDUL AZIZ BIN ABDUL RAHIM Group Manager Property Management IZMAN KAMAL BIN ISMAIL, MCCS Group Manager Secretarial & Legal [13] Majuperak holdings berhad ( X)

15 Chairman s statement On behalf of the Board of Directors, I am pleased to present the Annual Report and Financial Statements of MAJUPERAK HOLDINGS BERHAD ( MHB or the Company ) for the financial year ended 31 December OVERVIEW The Group activities in 2007 remained focus on its core businesses of property development and ancillary services. Property development activities softened amidst rising costs. However, innovative management policies and the consistent returns from property management services have enabled the Group to achieve favourable results for the financial year under review. The Group will continue to build on its strengths in all of its business segments to remain competitive and profitable in the foreseeable future. FINANCIAL REVIEW For the financial year ended 31 December 2007, the Group s revenue increased by 14% to 43.2 million (2006: 37.9 million) mainly due to the Group s continuing business activities. Accordingly, the Group achieved a pretax profit of 14.3 million for the year under review in comparison to 13.8 million recorded in the year 2006 whilst net profit attributable to shareholders was 9.3 million in comparison to 13.8 million earned in the previous year, due to decrease in profit contribution from the low cost housing development sector and the increase in taxation. Net assets per share attributable to ordinary equity holders of the parent as at 31 December 2007 improved to 1.33 (2006: 1.25) based on the ordinary shares in issue of 0.50 each of million. For the year under review, the Company s pretax profits was 0.7 million as compared to pretax losses of 0.1 million recorded in the year OPERATIONS REVIEW In 2007 the global economy experienced instability due the fallout from the US sub-prime crisis, the rise of petrol and construction materials prices. As a property development company MHB experienced another challenging year. However we focused our efforts on facing these challenges and continued to adapt to changing business conditions. During the year the Group continued to pursue opportunities for the development of new projects on its own and through joint venture arrangements. Selected attempts were made during the year to embark on these development opportunities. However due to unsatisfactory market responses and other limiting factors, the Group was not able to launch any new projects successfully and had to confine activities to the completion of its existing and ongoing projects. As a precautionary step and to diversify operations of the Group, MHB had started to explore into new and proven profitable business ventures. Majuperak holdings berhad ( X) [14] Annual Report 2007

16 Chairman s statement (continued) PROSPECTS FOR THE YEAR 2008 The Group strives for better performance for the financial year The Group shall continue to focus on strengthening its activities by offering good quality and innovative products and services while continuing to source new strategic investments and opportunities to enhance its value to the shareholders. In the first quarter of 2008, the Group entered into a Joint Venture Agreement ( JV ) with BKSC Properties Sdn. Bhd. to develop two parcels of adjacent land owned by the Company measuring approximately acres located in Seberang Perai Tengah, Pulau Pinang. During the period, the Group entered into a Heads of Agreement ( HOA ) with SM Turbo Sdn. Bhd. to consider on the development and implementation of Small Hydro Power Plants in Sungai Pelus and Sungai Korbu in the state of Perak Darul Ridzuan; and small renewable energy and electricity supply from Mini or Small Hydro Power Plants to the Perak High Technology Park. In the same quarter, the Group had entered into a Heads of Agreement ( HOA ) with Turboinstitut D.D., a company incorporated in Slovenia to consider on the development and implementation of an Integrated Center of Excellence for Small Hydro Power development and industry and Technology and operations and maintenance training center for Small Hydro Power development and industry. DIVIDEND The Board of Directors does not recommend any dividend for the year ended 31 December CORPORATE GOVERNANCE Statements of Corporate Governance and Internal Control have been included in the Annual Report. These affirm the Board s commitment in ensuring that good corporate governance compliance is practised throughout the Group. APPRECIATION I would also like to extend my sincere thanks to our shareholders, clients, suppliers and business associates, bankers and various government authorities for their support and confidence in the Group. My appreciation is also extended to the management and staff for all their dedication and commitment in their work throughout the year. DATO SERI MEGAT NAJMUDDIN BIN DATUK SERI DR HAJI MEGAT KHAS Chairman 14 April 2008 A n n u a l R e p o r t [15] M a j u p e r a k h o l d i n g s b e r h a d ( X)

17 Kenyataan Pengerusi Bagi pihak Lembaga Pengarah, Saya dengan sukacita mengemukakan Laporan Tahunan dan Penyata-penyata Kewangan MAJUPERAK HOLDINGS BERHAD ( MHB atau Syarikat ) bagi tahun kewang berakhir 31 Disember PANDANGAN Aktiviti-aktiviti Kumpulan di dalam tahun 2007 kekal fokus ke atas perniagaan-perniagaan utamanya berkaitan pembangunan hartanah dan perkhidmatan-perkhidmatan berkaitan. Aktiviti-aktiviti pembangunan hartanah menurun kesan daripada peningkatan kos. Walau bagaimanapun, polisi pengurusan yang yang inovatif dan pulangan konsisten daripada perkhidmatan-perkhidmatan pengurusan hartanah telah membolehkan Kumpulan mencapai keputusan yang memberangsangkan bagi tahun kewangan yang diulas. Kumpulan akan berterusan mengukuhkan kekuatannya di dalam semua segmen perniagannya bagi membolehkannya kekal bersaing dan menguntungkan di masa hadapan. ULASAN KEWANGAN Bagi tahun kewangan berakhir 31 Disember 2007, pendapatan Kumpulan telah meningkat sebanyak 14% kepada 43.2 juta (2006: 37.9 juta) terutamanya disebabkan oleh aktiviti-aktiviti perniagaan Kumpulan yang berterusan. Maka, Kumpulan telah memperolehi keuntungan sebelum cukai sebanyak 14.3 juta bagi tahun yang diulas berbanding dengan 13.8 juta yang direkodkan di dalam tahun 2006 manakala keuntungan bersih yang telah dibayar kepada para pemegang saham adalah sebanyak 9.3 juta berbanding dengan 13.8 juta perolehan pada tahun sebelumnya dan ini adalah disebabkan oleh penurunan di dalam sumbangan keuntungan daripada sektor pembangunan perumahan kos rendah dan peningkatan percukaian. Aset-aset bersih sesaham hasil daripada pemegang-pemegang ekuiti biasa induk setakat 31 Disember 2007 meningkat kepada 1.33 (2006: 1.25) berdasarkan kepada saham-saham biasa yang dikeluarkan sebanyak 0.50 setiapnya sebanyak juta. Bagi tahun di bawah ulasan, keuntungan sebelum cukai Syarikat adalah 0.7 juta berbanding dengan kerugian sebelum cukai sebanyak 0.1 juta yang direkodkan di dalam tahun ULASAN OPERASI Dalam tahun 2007 du nia telah mengalami ketidakstabilan ekonomi kesan daripada krisis sub-prima Amerika Syarikat, kenaikan harga petrol dan harga bahan-bahan binaan. Sebagai sebuah syarikat pembangunan hartanah MHB telah mengalami tahun yang mencabar. Walaubagaimanapun, kami telah memfokus usahausaha kami untuk menghadapi cabaran-cabaran ini dan berterusan menyesuaikan diri dengan perubahan keadaan perniagaan. Semasa tahun tersebut, Kumpulan sendiri terus mengejar peluang-peluang untuk memajukan projek-projek baru dan melalui urusan-urusan secara usahasama. Percubaan-percubaan yang terpilih telah dilakukan sepanjang tahun bagi memperolehi peluang-peluang pembangunan. Bagaimanapun, kesan daripada daripada maklumbalas pasaran yang tidak memberangsangkan dan lain-lain faktor yang menghalang, Kumpulan telah tidak dapat melancarkan sebarang projek baru dengan jayanya dan terpaksa memberi penumpuan kepada aktiviti-aktiviti bagi menyiapkan projek-projek yang sedang berjalan dan sedia ada. Sebagai langkah berjaga-jaga langkah-langkah untuk mempelbagai-bagaikan operasi Kumpulan, MHB telah mula meneroka pasaran-pasaran perniagaan yang terbukti menguntungkan. Majuperak holdings berhad ( X) [16] Annual Report 2007

18 Penyata Pengerusi (continued) PROSPEK BAGI TAHUN 2008 Kumpulan mengunjurkan pelaksanaan yang lebih baik bagi tahun kewangan Kumpulan akan berterusan memberikan tumpuan untuk mengukuhkan aktiviti-aktivitinya dengan menawarkan produk-produk dan perkhidmatan-perkhidmatan yang berkualiti dan inovatif sambil terus mencari pelaburan strategik yang baru dan peluang-peluang untuk menambahkan nilainya kepada para pemegang saham. Pada suku pertama tahun 2008, Kumpulan telah memasuki Perjanjian Usahasama dengan BKSC Properties Sdn. Bhd. untuk memajukan dua bidang tanah yang bersempadanan yang dimiliki Syarikat berukuran lebih kurang ekar terletak di Seberang Perai Tengah, Pulau Pinang. Dalam tempoh tersebut, Kumpulan telah memasuki Perjanjian Persefaham ( HOA ) dengan SM Turbo Sdn. Bhd. untuk mengambil kira pembangunan dan pembinaan Loji Kecil Kuasa Hidro di Sungai Pelus dan Sungai Korbu di dalam negeri Perak Darul Ridzuan; dan tenaga guna semula kecil serta bekalan elektrik daripada bersaiz Mini untuk Loji Kecil Kuasa Hidro kepada Taman Teknologi Tinggi Perak. Dalam suku yang sama, Kumpulan telah memasuki Memorandum Persefahaman ( HOA ) dengan pihak Turboinstitut D.D., sebuah syarikat yang telah ditubuhkan di Slovenia bagi mempertimbangkan dan mengimplementasikan sebuah Pusat Gabungan Kecemerlangan untuk pembangunan Tenaga Hidro Kecil dan industri dan Teknologi dan pusat latihan bagi operasi serta penyelenggaraan untuk pembangunan dan industri Tenaga Hidro Kecil. DIVIDEN Lembaga Pengarah tidak mencadangkan sebarang dividen bagi tahun berakhir 31 Disember TADBIRURUS KORPORAT Penyata Tadbirurus Korporat dan Kawalan Dalaman telah dimasukkan di dalam Laporan Tahunan. Keadaan ini mengesahkan komitmen Lembaga dalam memastikan bahawa tadbirurus korporat dipatuhi oleh keseluruhan Kumpulan. PENGHARGAAN Saya juga turut tulus menyampaikan ucapan terima kasih kepada pemegang-pemegang saham kami, pelangganpelanggan, pembekal-pembekal dan rakan-rakan niaga, pihak bank serta pelbagai pihak berkuasa kerajaan atas sokongan dan kepercayaan kepada Kumpulan. Penghargaan saya juga dipanjangkan kepada pengurusan dan kakitangan atas sikap dedikasi serta komitmen kerja mereka sepanjang tahun. DATO SERI MEGAT NAJMUDDIN BIN DATUK SERI DR HAJI MEGAT KHAS Pengerusi 14 April 2008 A n n u a l R e p o r t [17] M a j u p e r a k h o l d i n g s b e r h a d ( X)

19 Statement of Corporate Governance THE BOARD OF DIRECTORS The Board of Directors ( the Board ) of Majuperak Holdings Berhad ( MHB or the Company ) welcomes the Malaysian Code on Corporate Governance (the Code ) as it sets out principles (Part 1) and best practices (Part 2) on structures and processes the Majuperak Group of Companies (the Group ) may use in their operations towards achieving the optimal framework in the discharge of its responsibilities to protect and enhance shareholders value and the financial performance of the Group. In preparing this report, the Board has considered the manner in which it has applied these Principles of the Code and the extent to which it has complied with the Best Practices of the Code. Board Composition The Board presently consists of six (6) members, comprising four (4) Independent Non Executive Directors including the Chairman, and two (2) Non Independent Non Executive Directors. No individual or group of individuals dominates the Board s decision making and the number of directors fairly reflects the nominees of each of the Company s substantial shareholders. Dato Seri Megat Najmuddin bin Datuk Seri Dr Megat Khas is the Chairman of the Board and he is also the Senior Independent Non Executive Director. Encik Abdul Aziz bin Subali is a Non Independent Non Executive Director and the Group Chief Executive, who has the principal responsibility of reporting, clarifying and communicating matters to the Board. This balance enables the Board to provide clear and effective leadership to the Company and to bring informed and independent judgement to many aspects of the Company s strategy and performance so as to ensure that the Company maintains the highest standard of conduct and integrity. The profile of the Board members is set out on pages [10] to [12]. Two thirds of the Board members are Independent Directors since the Company recognises the contribution of Independent Directors as equal Board members in the development of the Company s strategy, the importance of representing the interest of public shareholders and providing a balanced and independent view to the Board. The independent directors are independent of management and free from any relationship that could interfere with their independent judgement. Responsibility of the Board The Board retains full and effective control of the Company and is responsible for the Company s overall Group strategy and objectives, its major capital expenditure projects, the consideration of significant financial matters as well as approval of material agreements. At the same time, the Board also ensures the sustenance of a dynamic and robust corporate climate focused on strong ethical values. This emphasises active participation and dialogues involving key people at all levels, as well as ensuring accessibility to information and transparency on all executive action. Majuperak holdings berhad ( X) [18] Annual Report 2007

20 Statement of Corporate Governance (continued) Board Meeting During the financial year under review, the Board conducted 3 meetings to review and discuss the Group s operations, approved quarterly reports and annual financial statements. At every meeting, the Board papers were delivered in advance to facilitate informed decision making. The Board also discussed the minutes of Audit Committee meetings and proposals by the Management that require Board s approval. The Board fully appreciates the importance of exercising high standards of corporate governance in the conduct of the Company s business and affairs through transparency, accountability and corporate governance. The Board continues to apply the principles and best practices as governed by the Listing Requirements of Bursa Malaysia Securities Berhad to undertake additional measures, principles and recommendation embodied in Malaysia Code on Corporate Governance and strive to adopt the substance and not merely the form behind the corporate governance prescription. The attendance record for each Director is as follows:- Members No. of meetings attended Percentage Dato Seri Megat Najmuddin bin Datuk Seri Dr Megat Khas Chairman, Independent/Non Executive Tan Sri Dato (Dr) Abdul Aziz bin Abdul Rahman Independent/Non Executive Tan Sri Dato Sri Abang Urai bin Datu Hakim Abang Haji Mohideen Independent/Non Executive Tuan Haji Ibrahim bin Katop Independent/Non Executive Abdul Aziz bin Subali Non Independent/Non Executive Wan Salmah binti Wan Abdullah Non Independent/Non Executive 3 of 3 100% 3 of 3 100% 3 of 3 100% 3 of 3 100% 3 of 3 100% 3 of 3 100% Supply of Information The Board is supplied with information in a timely manner and appropriate quality to enable them to discharge their duties and due notice is given to Directors with regards to issues to be discussed. All resolutions are recorded and thereafter circulated to the Directors for comments before minutes of proceedings are finalised and confirmed. Directors are given access to any information within the Company. Directors are also entitled to have access to the advice and services of the Company Secretaries. During the financial year ended 31 December 2007, the Company had also organised briefings by the management of core subsidiaries to give the directors a better understanding of their operations. A n n u a l R e p o r t [19] M a j u p e r a k h o l d i n g s b e r h a d ( X)

21 Statement of Corporate Governance (continued) Directors Training The Board is committed to continuous training to enable the directors to effectively discharge their duties. All Directors had attended and successfully completed the Mandatory Accreditation Programme as prescribed by Bursa Malaysia. Directorship in Other Companies In ensuring continuous commitment from the Directors to discharge their duties effectively, none of the Directors of the Company holds more than 10 directorships in public listed companies and more than 15 in non-public listed companies. Nomination and Remuneration Committee The Board established a Nomination and Remuneration Committee ( NRC ), on 21 May Attendance of NRC Meetings during the Financial Year Ended 31 December 2007 : Members No. of meetings attended Percentage Dato Seri Megat Najmuddin bin Datuk Seri Dr Megat Khas Chairman, Independent/Non Executive Tan Sri Dato (Dr) Abdul Aziz bin Abdul Rahman Independent/Non Executive Tan Sri Dato Sri Abang Urai bin Datu Hakim Abang Haji Mohideen Independent/Non Executive Tuan Haji Ibrahim bin Katop Independent/Non Executive 2 of 2 100% 2 of 2 100% 2 of 2 100% 2 of 2 100% The Board through the NRC ensures that it recruits to the Board individuals of sufficient caliber, knowledge, integrity, professionalism and experience to fulfill the duties of a director and reviews the annual fees, attendance allowance and other benefits for the directors of the Company. The decision of the determination of the level of remuneration shall be the responsibility of the Board as a whole after considering recommendations from the Remuneration Committee with ultimate approval of shareholders at the AGM. Pursuant to Article (84) of the Company s Articles of Association, an election of Directors shall take place each year. At the annual general meeting in every subsequent year, one-third of the Directors for the time being or, if their number is not three or a multiple of three, then the number nearest to one-third shall retire from office and be eligible for re-election PROVIDED ALWAYS that all Directors appointed for a fixed period pursuant to these Articles shall retire from office at least once in every three (3) years but shall be eligible for re-election. A retiring Director shall retain office until the close of the meeting at which he retires. Majuperak holdings berhad ( X) [20] Annual Report 2007

22 Statement of Corporate Governance (continued) In addition, pursuant to Section 129(6) of the Companies Act, 1965, directors who are over the age of 70 years are required to submit themselves for re-appointment annually. The aggregate remuneration of the directors (all of whom are non-executive) of the Company for the financial year ended 31 December 2007 is as follows: Company: fees and attendance allowances 200,800 Subsidiary companies: fees, salary, bonus, allowances and benefits in kind 26,500 Total 207,300 Band of Remuneration for the Financial Year Ended 31 December 2007 are as follows:- Band of Remuneration All are Non Executive Directors Above 50,000 1 Below 50,000 5 Investor Relations and Shareholders Communication The Board acknowledges the need for shareholders to be informed of all material business matters affecting the Company through the Annual Report, AGM and extraordinary general meeting (if required). Announcements and release of financial results on a quarterly basis, semi annual returns and business acquisitions and disposals, provide the shareholders and the investing public with an overview of the Group s performance, operations and directions. Members of the public can obtain the full financial results and the Company s announcements from the BMSB website. In addition, nominees of most of the Company s substantial shareholders sit on the Board. This provides a platform for interactions and direct communications between the Board, management and substantial shareholders. Any queries from other shareholders are communicated through the Company Secretary. Annual General Meeting ( AGM ) The AGM is the principal forum for dialogue with shareholders. Notice of the AGM and Annual Reports are sent out to shareholders at least 21 days before the date of meeting. Besides the usual agenda for the AGM, the Board provides opportunities for shareholders to raise questions pertaining to the business activities of the Group. The directors and the Group Chief Executive are available to provide responses to questions from the shareholders during the meeting. For re-election of directors, the Board shall ensure that full information shall be disclosed through the notice of meeting regarding directors who are retiring and who are willing to serve if re-elected. An explanatory statement to facilitate full understanding and evaluation of the issues involved shall accompany items of special business included in the notice of the meeting. A n n u a l R e p o r t [21] M a j u p e r a k h o l d i n g s b e r h a d ( X)

23 Statement of Corporate Governance (continued) Financial Reporting For financial reporting through quarterly reports to BMSB and the annual report to shareholders, the directors have a responsibility to present a fair assessment of the Group s position and prospects. The Audit Committee assists the Board in scrutinising information for disclosure to ensure accuracy, adequacy and completeness. The Statement of Directors Responsibilities pursuant to Section 169 of the Companies Act, 1965 is set out on page [42] of this Annual Report. Internal Control The Board takes responsibility for the Group s internal control system and risk management and for reviewing its adequacy and integrity. The Board is of the view that the current system of internal control in place throughout the Group is sufficient to safeguard the Group s assets and shareholders investment. The Group has in place an adequately resourced internal audit department of the Company s ultimate holding corporation. The Statement on Internal Control as set out on pages [24 to [25] in this Annual Report provides an overview of the state of internal controls within the Group. Relationship with Auditors The role of the Audit Committee in relation to the auditors can be found in the Report of Audit Committee set out on pages [26] to [30]. The Company has always maintained a close and transparent relationship with its auditors in seeking professional advice and ensuring compliance with accounting standards in Malaysia. Corporate Social Responsibility The Company has established a Corporate Social Responsibilities ( CSR ) framework which places a firm commitment towards achieving a balance between profitability and contributions in CSR activities. With the CSR framework in place, the Company and its subsidiaries strive to integrate CSR initiatives in every aspect of its business focusing on its employees, its shareholders, its customers, the environment and society as a whole, in addition to complying with all applicable legal and regulatory requirements. During the Financial Year Ended 31 December 2007 the Group contributed the following:- 1. Donation to Sekolah Agama At Taalim in Manjung, Perak. 2. Donation of a van for the use of Badan Bantuan Khairat Kematian dan Kebajikan Islam, Taman Meru 2C in Ipoh Perak. Majuperak holdings berhad ( X) [22] Annual Report 2007